KINS
Normalized earnings, you can joke about the quote. if I didn't normalize those earnings I wouldn't of been a buyer in the upper 5's in May. And by the way how do those seller feel that sold to me in the high 5's. Normalize earnings is and important process, you do it judge whether a quarter is out of whack. Whether GM are abnormally high or abnormally low, whether tax rate is abnormally high or low. Do these things actually change the earnings numbers not really, but these are important things to justify to either stay in, buy more, sell, or buy in when a stock is getting whacked. So all I can say is you may think my definition of the term normalized earnings is not valid, but it is a tool I apply to smooth out results. It basically gives me a better idea if the number is sustainable, artifically low or high, and then I apply a fair valuation and come to the decision whether a stock is undervalued. A process that has worked extremely well for me over the years of application. All is just my opinion, and I could always be wrong though.